Fintech trends in 2022 with GPS, Mondu and Brite payments
This month at Fintech Times our focus turns to reflection as we look back at developments over the past 12 months. 2022 has certainly been a challenging year for anyone with global economic activity experiencing a severe slowdown, with inflation higher than in decades.
We’ve reached out to our community of fintech CEOs and leaders to share their thoughts on the year’s most important trends – and they’ve had a lot to say! Let’s start with GPS, Mondu and Brite Payments.
Global Processing Services (GPS)
In June, Kevin Schultz stepped into the shoes of Joanne Dewar as CEO of global payment technology platform Global Processing Services (GPS). Before that, he served as Fiserv’s CEO for digital banking. Here he shares his thoughts on 2022.
“On a macroeconomic level, 2022 has been a turbulent year resulting in a challenging economic environment for many markets around the world, and this will continue as we move into 2023. Businesses are reassessing their priorities and operating models to position themselves for future growth and to withstand any economic shocks. Pivoting and adjusting your plans quickly is an important characteristic of any high-performing business.
“We’ve seen both B2B and B2C businesses rethink their technology and infrastructure to ensure they have the right platforms in place for the customers they serve around the world. Digital transformation accelerated during the two years the pandemic lasted, and from our vantage point, it has remained in tact as the world has emerged from shutdowns.Companies that were at the forefront of their digital transformation journeys have capitalized on these investments and continue to enjoy the first-mover advantage in 2023, able to be more agile in their product innovation and expansion.
“Demand for contactless, frictionless and faster digital payment solutions continued exponentially during 2022, with a number of new innovations and increased choices for consumers, especially in the area of credit and BNPL. The companies that come out on top are those that are truly customer-centric, growth-oriented and partnership-driven.
“One of the standouts for me in 2022, has to be Zilch, a rapidly growing BNPL supplier and valued customer of ours at GPS. Zilch takes its deep understanding of its customers’ pain points and helps make their lives easier. And it does so while leveraging the expertise of key partners, allowing it to focus on what it does best while outsourcing the rest. And it is enjoying fantastic growth as a result.
“Having been in the industry for more than 40 years, I continue to be impressed by how payment growth shows no signs of slowing down. The number of non-traditional players now offering payments as a core offering is truly amazing. To both grow and evolve at the same time is no small feat, and speaks to the extreme value of payments to consumers worldwide.
“The success that we at GPS are excited to drive is based on consumer trust and reliable service. Successful firms – whether traditional financial institutions or newcomers – will continue their growth trajectory because they understand these fundamental truths. Consumer trust is paramount and must be in the center of everything these companies offer.”
Brite payments
Lena Hackelöer is the CEO and founder of Brite payments, a second-generation challenger in the European payments area. Before that, she spent seven years Klarna, where she eventually became the marketing director. She looks at how account-to-account (A2A) payments have continued to gain momentum this year and stand out as one of the key trends in the fintech sector.
“A2A payments are made possible through open banks’ use of APIs, so money can be moved directly from a consumer to a merchant account – or vice versa. The benefits of such payments are significant, especially in an age of online shopping, subscription-based services and an ever-growing range of online marketplaces.
“Take for example our ‘Single Sign’ solution, launched earlier this year, which enables instant A2A payments without the need to enter cards or personal data. Our solution helps users pay up to 40 percent faster than payments based on standard open bank-based payment flow and represents the next generation of instant bank payments.It is very positive for merchants and helps eradicate many long-standing problems around payments.
“The growth of the subscription economy is another trend, A2A payments also provide significant benefits for companies with subscription-based models. Accidental failed payments, often caused by changing details or expired payment cards, can prevent the delivery of these services. However, recurring payments on an A2A frameworks mitigate this problem.As a result, the growing number of businesses with subscription-based offerings can reduce customer churn and unlock new opportunities.
“The growth of A2A payments also intersects with another big trend, embedded finance. The continued digitization of everyday services is creating new use cases, and demand for these products is maturing. Payments has been at the forefront of the embedded finance revolution, but we expect to see many more financial services emerge within embedded finance in 2023.”
Mondu
Philip Powell is co-founder and co-CEO of Berlin-based Mondu, a B2B payments company. He is a serial entrepreneur and venture builder with over 15 years of experience in e-commerce and banking in Europe and Latin America. He addresses the rise in popularity of embedded finance.
“Demand for embedded financing solutions continued to increase, which also led to increased use of open banking services and the need for regtech tools.
In general, regardless of the trends and the fintech space we serve, I think we all solve three components:
- Time – millennials and Gen Z demand financial products that will not waste their time, and they are unlikely to compromise.
- Security – with increasing fraud rates and higher expertise in data protection, robust security is the foundation of any online product, more so for fintechs.
- Customization – whether we’re talking about flexible integration with other products or offering tailored solutions to end users, customization and diversification can help you stand out from the competition.”
